A chapter 7 is not a "reorganization", a Chapter 13 and Chapter 11 for businesses are "reorganizations".
If you file for a Chapter 13 bankruptcy you can set up a payment plan which must include the principal loan on your home and if you can afford it, you can probably keep your home. If you cannot make the payments, it might be better to let the home go and file under Chapter 7 if you fall under the means test.
Contact a local attorney to talk over the details in depth
Matthew Johnson phone# 206.747.0313 is licensed in the State of Washington and performs bankruptcy, short sale negotiations, and estate planning in Whatcom, Skagit, Snohomish, King and Pierce counties. The response does not constitute specific legal advice, which would require a full inquiry by the attorney into the complete background of the facts and circumstances surrounding this matter; rather, it is intended to be general legal information based on the limited information provided by the inquirer; it This response also does not constitute the establishment of an attorney-client relationship, which can only be established after a conflict of interest evaluation is completed, your case is accepted, and a fee agreement is signed. Johnson Legal Group, PLLC
Chapter 7 is not a reorganization, it's a liquidation, not by any means the same thing.
You need to speak to an attorney if your case is complicated, and even if it isn't. Are you current on your mortgage payments? That is the key factor, I think though.
The RI Bankruptcy Court has an excellent Loss Mitigation Program that is designed to help you keep your home. Please feel free to contact me or any experienced attorney to discuss your situation. 401 732-4420.
Having a complicated case, is a good reason to have a bankruptcy attorney assist you.
As my colleagues have said, chapter 7 is not a reorganization.
Either you get current and keep current, and decide whether or not to reaffirm the mortgage, or you need much more assistance.
General legal advice is offered for educational purposes only. A consultation with a qualified attorney is required to determine specific legal advice as to your situation and applicable law. We are a debt relief agency and we help people file for relief under the bankruptcy laws.
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Hope this perspective helps!
Please consult with a local bankruptcy attorney.
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